‘No surprise’ as SA unemployment rate falls in February
The rate of unemployment in South Australia fell in February, following a record influx of new jobs the month prior.
South Australian unemployment fell 0.4 points to 3.7 per cent in February on a seasonally adjusted basis.
Underemployment fell by 0.4 points too to 6.2 per cent, which is above that of the national level of 5.9 per cent.
Nationally, the seasonally adjusted unemployment rate remained steady at 4.1 per cent in February
ABS head of labour statistics Bjorn Jarvis said 53,000 jobs were lost from the economy in February.
“Fewer older workers returning to work in February contributed to the fall in employment this month, with lower levels of employment in the older age groups in February 2025 compared with 2024,” Jarvis said.
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“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years.
“In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year.”
Adelaide-based BDO economics partner Anders Magnusson said SA’s decrease in jobs was a “moderation, not a loss”.
“It’s no surprise that employment fell, with the market adjusting to the influx of workers from January,” Magnusson said.
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“In January 2025, South Australia led the nation in employment growth, adding 20,600 of the 30,500 new jobs across Australia. This marks the largest single-month increase ever recorded for South Australia by the ABS Monthly Labour Force data, which dates back to 1978.
“This significant growth is the most notable monthly shift that the market has seen since the sharp declines in 2020 due to COVID-19. Given the market correction in February, the net employment increase in 2025 is 9,000 jobs to date.
“In 2025, new jobs in South Australia have predominantly been part-time, with a relatively even split between men and women. This is promising to see, as continued balanced job creation is needed to support ongoing economic stability and promote productivity growth in South Australia.”
Magnusson added that SA’s unemployment rate had fluctuated over the past year but remained within a range of 3.7 per cent to 4 per cent.
“This suggests that while job creation is occurring, it isn’t outpacing the number of new entrants to the job market, highlighting the market’s capacity to integrate new workers effectively,” he said.
Seasonally adjusted monthly hours worked fell by 0.4 per cent in February 2025. In annual terms, the rise in hours worked is higher than the growth in people employed.
On a trend basis, the national unemployment rate remained steady at 4 per cent, while the underemployment rate remained at 5.9 per cent and the underutilisation rate fell slightly to 9.9 per cent.
Nationally, Magnusson said the labour market was “placid”.
“The unemployment rate released today aligns with the forecast that the RBA’s made in February,” he said.
“That is important because the February forecast was unusual as it showed unemployment stabilising at 4.2 per cent over the next few years, rather than the previously expected 4.5 per cent.
“This adjustment reflects the ongoing strength of Australia’s job market, which has consistently added an average of 40,000 jobs per month over the past 12 months to January without adding to inflation. However, February saw a reduction in employed persons by 52,000 due to fewer older workers returning to work in February.”
